When educational specialist RM announced that it was pulling the plug on its hardware it was inevitable there would be some pain as it repositioned itself as a software and services player.
The firm is still forecasting a return to revenue growth next year but in the meantime seems to be getting its operations trimmed and has delivered an upbeat assessment of its first quarter.
The decision to exit hardware was made back in late 2013 and production ceased in June 2014 as it moved the focus onto software and that is still working through the balance sheet but there are signs that other parts of the business are picking up the slack.
The firm’s annual general meeting statement revealed that trading in the first quarter was in line with expectations and there had been some decent wins.
John Poulter, non-executive chairman at RM, will stand up this morning and tell those assembled at the ADM that the first quarter delivered what the board had hoped for.
In the first three months there were some positive moves with RM Results, formerly known as the Assessment and Data Services operation, signing a three year contract to provide educational charity AQA with e-marketing services in February.
Earlier this month the decision was made to sub-let one of the buildings in Abingdon to South Oxfordshire District Council which would help take some of the costs out of an expensive lease and remove £2.4m off the balance sheet.
The firm also stated that it continues to keep a close eye on costs as it looks to keep the business on track.
“The Board is mindful of the need for capital discipline and is committed to maintaining an efficient balance sheet over the medium term, taking into account the business's performance and its likely development and investment needs,” it revealed in the AGM statement .